From Fintag’s Newsletter: “Trying to ring fence banks is ludicrous. Not only is it not practical it is pointless. As has been noted by others, the debt crisis was not caused by banks - it was also caused by retail outfits thinking they were investment banks (RBS, Northern Rock, AIG) but who cares? What us Brits care about is tax revenue. We need lots of it so alienating Banks who pay a lot of tax is pointless. HSBC and Barclays will soon be relocating and the UK will start moving into France territory; Bankrupt with spin.
“So UK inflation is pumping hard at 4.5% and interest rates stay at nearly zero. What is the point of giving the rate setting policy to the Bank of England who won't use it? Any monkey can keep it at nearly zero. Remember the days when the rate setting committee (who spend most days in Starbucks near Mansion House) would make a song and dance about tweaking the rates 25 bips? Pathetic. Rates going up will dampen inflation and keep wage rises down. Inflation leads to job losses leads to higher benefits and lower taxes which equals anarchy (see below re Slovenia) and MORE GOVERNMENT DEBT.
Why the UK is AAA is beyond me…
Read more at http://www.fintag.com/
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